The Tamesis
The Trump administration said it would impose new tariffs on chip imports from China due to Beijing’s “unreasonable” pursuit of dominating the industry, but said it would delay the new tariffs until 2027.
The move preserves Trump’s ability to impose tariffs and is aimed at easing tensions with Beijing amid export restrictions on rare earth metals that global technology companies rely on and are controlled by China.
The U.S. Trade Representative said in a press release that new tariff rates will be announced at least 30 days in advance.
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The report said: “China’s targeting of dominance in the semiconductor industry is unreasonable and would burden or restrict U.S. commerce, so action is warranted.”
The announcement of the new tariffs was in year-long investigation Washington has accused China of “unfair trade practices” in exporting “legacy” or old technology chips to the United States, initiated by former President Joe Biden’s administration.
Biden has imposed a 50% tariff on Chinese semiconductors on January 1, 2025.
The chip industry is also awaiting a decision from the Trump administration on a broader tariff investigation into global chip imports.
Under China’s national security regulations, the investigation could impose higher tariffs on Chinese semiconductors from various countries, as well as a large number of electronic equipment containing these semiconductors. However, U.S. officials have said privately that these taxes may not take effect anytime soon.
Beijing is still hot
After extensive negotiations with Beijing and China, Washington decided to postpone the current raft of tariffs. a meeting In October, Trump held talks with Chinese President Xi Jinping in South Korea.
The purpose of the negotiations is to delay some of China’s Broadest licensing rules Control the export of rare earths and magnets that are vital to everything from smartphones and wind turbines to electric vehicles and defense systems.
As part of the negotiations, Washington also delayed rules that would limit U.S. technology exports to subsidiaries of blacklisted Chinese companies. it has Start reviewing license For Chinese companies looking to purchase the H200, Nvidia’s second most powerful AI chip.
This move makes the Trump administration under attack China hawks from the United States worry that these chips may enhance China’s military power.
Still, Beijing has expressed angry opposition to tariffs planned for 2027, even as the latest plan delays the imposition of new tariffs.
The Chinese Embassy in Washington said it was completely opposed to any tariffs. “
“Politicizing, instrumentalizing and weaponizing trade and technology issues and destabilizing global industrial and supply chains will not benefit anyone and will ultimately be counterproductive,” it said in a statement to Reuters. “We will take all necessary measures to resolutely safeguard our legitimate rights and interests,” it added.
Meanwhile, China’s Foreign Ministry said it “firmly opposes” Washington’s “abuse of tariffs and unreasonable suppression of China.”
It said that if the United States does not “correct its wrong practices,” it will “take corresponding measures to safeguard its rights and interests.”
- Vishakha Saxena Additional Editor, Reuters
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